Financial Performance Overview - Net sales remained flat year-over-year at $724 million[11] - Adjusted EBITDA decreased to $162 million compared to $182 million in Q1 2024[11, 37] - Adjusted EPS decreased to $1.27 from $1.53 in Q1 2024[11, 38] Siding Solutions - Siding Solutions net sales increased by $41 million to $402 million, compared to $361 million in Q1 2024[22, 39] - Siding Solutions sales volume increased by 9%[12] - Siding Solutions adjusted EBITDA increased to $106 million, up from $90 million in Q1 2024[22, 39] - Siding Solutions EBITDA margin was 26%[12] OSB (Oriented Strand Board) - OSB net sales decreased to $267 million, compared to $313 million in Q1 2024[26, 39] - OSB adjusted EBITDA decreased to $54 million, down from $90 million in Q1 2024[26, 39] - Overall OSB volume decreased by 10%[26] Capital Allocation and Liquidity - Capital expenditures totaled $64 million[11] - The company returned $81 million to shareholders, including $20 million in dividends and $61 million in share repurchases[11, 12] - The company has $1 billion in total liquidity[12]

Sales Performance - Siding net sales increased by $41 million (11%) to $402 million, driven by 9% higher volumes and 2% higher prices[5] - OSB net sales decreased by $46 million (15%) to $267 million, due to 11% lower prices and 4% lower volumes[9] - Consolidated net sales remained flat at $724 million[9] - Net sales for Q1 2025 remained flat at $724 million compared to Q1 2024[22] - Net sales for the Siding segment increased to $402 million in Q1 2025 from $361 million in Q1 2024, while OSB segment sales decreased to $267 million from $313 million[31] Income and Profitability - Net income decreased by $17 million to $91 million, with net income per diluted share at $1.30, a decrease of $0.18[10] - Net income for Q1 2025 was $91 million, a decrease of 15.7% from $108 million in Q1 2024[22] - Gross profit decreased to $197 million in Q1 2025, down from $214 million in Q1 2024, representing a decline of approximately 7.9%[22] - Adjusted income decreased to $89 million in Q1 2025 from $111 million in Q1 2024, with adjusted diluted EPS falling to $1.27 from $1.53[32] EBITDA and Key Performance Measures - Adjusted EBITDA was $162 million, a decrease of $20 million year-over-year[5] - Adjusted EBITDA decreased to $162 million in Q1 2025 from $182 million in Q1 2024, with Siding segment adjusted EBITDA increasing to $106 million from $90 million[32] - Adjusted EBITDA is reported as a key performance measure, reflecting the company's operational performance[20] Future Guidance - The company expects Siding net sales for Q2 2025 to be between $445 million and $455 million, representing 9-10% growth[6] - Full year 2025 Siding net sales guidance is approximately $1.7 billion, indicating over 9% growth[6] - Capital expenditures for full year 2025 are expected to be around $410 million[6] Liquidity and Capital Management - Total liquidity as of March 31, 2025, was $1.0 billion[5] - Cash and cash equivalents decreased to $256 million as of March 31, 2025, down from $340 million at the end of 2024[23] - The company repurchased $61 million of common stock in Q1 2025, compared to $13 million in Q1 2024[24] Market Indicators - Housing starts in the U.S. are monitored as a leading indicator of demand for the company's products[25] - Housing starts for single-family homes decreased to 228,000 in Q1 2025 from 241,000 in Q1 2024, while multi-family starts increased to 89,000 from 80,000[27] - The total number of housing starts reported by the U.S. Census Bureau for Q1 2025 was 317,000, slightly down from 321,000 in Q1 2024[27] Operational Efficiency - Overall equipment effectiveness (OEE) for Siding segment decreased to 76% in Q1 2025 from 78% in Q1 2024, and for LPSA segment decreased to 67% from 76%[30] - The company aims to optimize capital investments and improve overall equipment efficiency through OEE tracking across all sites[29] - The company monitors sales volumes in million square feet (MMSF) to identify changes in product demand and market opportunities[28]

Since the start of 2025, the United States construction sector has been navigating through choppy waters, hit by several unfavorable market factors, including a still-high mortgage rate scenario and an unhinged interest rate environment. With the 30-year mortgage rate lingering between 6.9% and 6.7% (during the January-March 2025 period), reaching as high as 7.04% for the week ending on Jan. 16, 2025, the residential construction market is likely to have remained soft, mainly for the multi-family starts. Ho ...

Company Overview - Louisiana-Pacific (LPX) is expected to report a year-over-year decline in earnings, with a projected EPS of $1.13, reflecting a decrease of 26.1% [3] - Revenues for the quarter are anticipated to be $692.85 million, down 4.3% from the previous year [3] Earnings Expectations - The earnings report is scheduled for release on May 6, 2025, and actual results that exceed expectations could lead to a stock price increase, while a miss may result in a decline [2] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4] Earnings Surprise Prediction - The Most Accurate Estimate for Louisiana-Pacific is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.44%, suggesting a bearish sentiment among analysts [10] - The company currently holds a Zacks Rank of 4, making it challenging to predict an earnings beat [11] Historical Performance - In the last reported quarter, Louisiana-Pacific exceeded the expected EPS of $0.79 by delivering $1.03, resulting in a surprise of +30.38% [12] - Over the past four quarters, the company has beaten consensus EPS estimates four times [13] Industry Comparison - Boise Cascade (BCC), another player in the Zacks Building Products - Wood industry, is expected to report earnings of $1.36 per share, reflecting a year-over-year decline of 47.9% [17] - Boise Cascade's revenues are projected to be $1.45 billion, down 11.6% from the previous year [17] - The company has an Earnings ESP of 9.56% and a Zacks Rank of 3, indicating a higher likelihood of beating the consensus EPS estimate [18]

Group 1: Coca-Cola (KO) - Coca-Cola offers a 2.8% dividend yield and is considered relatively safe in the current market environment, making it a strong investment choice [2][3] - The company is insulated from cross-border tariffs due to its local production and sales strategy, which minimizes exposure to tariff impacts [2][3] - Increased packaging costs from tariffs on aluminum are not significant for Coca-Cola, as aluminum constitutes a small part of its overall cost structure [3] Group 2: Louisiana-Pacific (LPX) - Louisiana-Pacific specializes in engineered wood siding and oriented strand board (OSB), with its pricing heavily influenced by wood fiber and resin costs [4] - The company could benefit from tariffs on Canadian wood fiber, as it has the capacity to increase production in both Canada and the U.S. [5][6] - Long-term prospects for engineered wood siding are positive, with potential market share gains against alternatives like vinyl and fiber cement [7] Group 3: Pool Corp. (POOL) - Pool Corp. is a resilient business, with 65% of its sales coming from maintenance and minor repairs, which supports sales even in a slowing discretionary spending environment [8] - The company does not have significant direct imports and does not anticipate material impacts from current tariffs on sales for 2025 [10] - Long-term growth prospects remain strong due to ongoing pool maintenance spending and a potential recovery in new pool construction [11]

Core Viewpoint - Louisiana-Pacific (LPX) is experiencing a decline in share price and is under scrutiny ahead of its upcoming earnings report, with expectations of lower earnings and revenue compared to the previous year [2][3]. Group 1: Recent Performance - In the latest trading session, LPX closed at $84.20, reflecting a +0.44% change from the previous day, outperforming the S&P 500's gain of 0.13% [1]. - Over the past month, LPX shares have decreased by 10.9%, which is worse than the Construction sector's loss of 7.68% and the S&P 500's loss of 6.3% [1]. Group 2: Earnings Expectations - Louisiana-Pacific is scheduled to release its earnings on May 6, 2025, with an expected EPS of $1.13, indicating a 26.14% decline from the same quarter last year [2]. - The consensus estimate for revenue is projected at $692.85 million, reflecting a 4.3% decrease from the equivalent quarter last year [2]. Group 3: Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of $4.99 per share and revenue of $2.95 billion, showing changes of -15.14% and +0.39% respectively from the previous year [3]. Group 4: Analyst Estimates and Rankings - Recent changes to analyst estimates for Louisiana-Pacific indicate a shift in business outlook, with positive revisions seen as a sign of optimism [3]. - The Zacks Rank system, which evaluates estimated changes, currently ranks Louisiana-Pacific at 4 (Sell), with a consensus EPS projection that has moved 2.44% lower in the past 30 days [5]. Group 5: Valuation Metrics - Louisiana-Pacific has a Forward P/E ratio of 16.8, which is lower than the industry average of 17.1, indicating it is trading at a discount [6]. - The company has a PEG ratio of 1.09, compared to the Building Products - Wood industry's average PEG ratio of 2, suggesting a more favorable valuation relative to growth expectations [7].

Group 1: Stock Performance - Louisiana-Pacific (LPX) closed at $86.38, with a +0.86% change from the previous session, underperforming the S&P 500's daily gain of 1.81% [1] - Over the last month, LPX shares decreased by 4.17%, which is better than the Construction sector's loss of 7.59% and the S&P 500's loss of 6.14% [1] Group 2: Upcoming Earnings - Louisiana-Pacific is set to announce its earnings on May 6, 2025, with projected earnings of $1.12 per share, reflecting a year-over-year decline of 26.8% [2] - The consensus estimate for revenue is $692.85 million, indicating a 4.3% decrease compared to the same quarter of the previous year [2] Group 3: Annual Forecast - For the entire year, Zacks Consensus Estimates forecast earnings of $5.12 per share and revenue of $2.95 billion, representing changes of -12.93% and +0.39%, respectively, compared to the previous year [3] Group 4: Analyst Estimates - Recent modifications to analyst estimates for Louisiana-Pacific are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [4] - The Zacks Rank system, which considers these estimate changes, has a track record of outperforming, with stocks rated 1 producing an average annual return of +25% since 1988 [5][6] Group 5: Valuation Metrics - Louisiana-Pacific is currently trading at a Forward P/E ratio of 16.74, which is a discount compared to the industry average of 16.93 [7] - The company has a PEG ratio of 1.09, significantly lower than the Building Products - Wood industry's average PEG ratio of 2.05 [7] Group 6: Industry Ranking - The Building Products - Wood industry, part of the Construction sector, has a Zacks Industry Rank of 204, placing it within the bottom 18% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Louisiana-Pacific Corporation (LPX) has launched the Naturals Collection, enhancing its SmartSide ExpertFinish Trim & Siding portfolio, which solidifies its market presence in North America [1][3]. Product Launch - The Naturals Collection features six prefinished colors: Bonsai Black, Weathered Walnut, Aged Amber, Saffron Cedar, Smoky Slate, and Washed White, designed to mimic the appearance of stained wood [2]. - Each prefinished option is backed by a 5/15/50-year limited warranty, ensuring durability [3]. - The Naturals Collection will be available through the company's contractor and dealer network until 2025 [3]. Business Performance - The Siding unit accounted for 53% of LPX's net sales in 2024, with EBITDA margin expanding by 470 basis points to 25% due to increased sales volume [4]. - LPX has experienced higher-than-expected demand for its Smooth SmartSide and ExpertFinish products, indicating strong market interest [5]. - The company plans to invest approximately $200 million in capacity expansion, primarily in the second half of 2025, to support growth in Siding revenues [5]. Market Context - Over the past six months, LPX shares have decreased by 17.2%, compared to an 8.5% decline in the Zacks Building Products - Wood industry [6]. - Factors such as housing market softness, new tariffs, and inflation are impacting growth, but increased demand for Siding products and disciplined capital management are expected to support future profitability [8].

Core Insights - Investors are evaluating Louisiana-Pacific (LPX) and Trex (TREX) as potential undervalued stocks in the Building Products - Wood sector [1] Valuation Metrics - Both LPX and TREX currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions for both companies [3] - LPX has a forward P/E ratio of 18.91, while TREX has a higher forward P/E of 29.99 [5] - The PEG ratio for LPX is 1.23, suggesting a more favorable valuation relative to its expected earnings growth compared to TREX's PEG ratio of 2.56 [5] - LPX's P/B ratio stands at 4.27, significantly lower than TREX's P/B ratio of 8, indicating a better market value relative to book value for LPX [6] Value Grades - Based on the valuation metrics, LPX has earned a Value grade of B, while TREX has received a Value grade of D, suggesting that LPX is currently the superior value option [6][7]

Core Insights - Louisiana-Pacific Corporation (LPX) reported better-than-expected fourth-quarter 2024 results, with earnings and net sales exceeding Zacks Consensus Estimates, driven by strong demand in the Siding segment and disciplined capital management [1][4][9] - The company achieved adjusted EPS of $1.03, surpassing the consensus estimate of 79 cents by 30.4%, and net sales of $681 million, which was 2.5% above the consensus estimate [4] - Despite challenges in the OSB market, LPX's strategic execution and operational efficiency helped mitigate pressures, leading to a successful year overall [1][10] Financial Performance - Adjusted EBITDA for the fourth quarter was $125 million, down 3.1% year-over-year, primarily due to pricing pressures in the OSB segment [5] - The Siding segment's sales reached $362 million, a 9% increase from the prior year, supported by a 3% rise in volume and a 6% increase in average selling prices [6] - OSB segment sales decreased 2% year-over-year to $267 million, impacted by a 7% decline in OSB prices, although volumes increased by 6% [7] Segment Analysis - The Siding segment maintained profitability with an adjusted EBITDA of $72 million, a slight increase of 1% from the previous year, despite higher sales and marketing expenses [6] - The OSB segment's adjusted EBITDA fell 15% year-over-year to $50 million due to lower prices [7] - LP South America (LPSA) reported sales of $50 million, a 5% decline year-over-year, but adjusted EBITDA increased 16% to $13 million due to cost management [8] 2024 Highlights - For the full year 2024, LPX's adjusted EPS was $5.88, up 82.6% from $3.22 in 2023, with total revenues of $2.9 billion, a 14% increase from the previous year [9] - The Siding business was a key driver of success, achieving a 17% increase for the year, outperforming the broader market [10] - The company maintained an EBITDA margin of 25% for the Siding segment, despite challenges in the repair and remodel market [10] Cash Flow and Shareholder Returns - At the end of 2024, LPX had $900 million in liquidity, with cash and cash equivalents increasing to $340 million from $222 million in 2023 [12] - The company repurchased 2.4 million shares for $212 million in 2024, with $238 million remaining under share repurchase authorizations [13] 2025 Outlook - For Q1 2025, LPX expects Siding revenue growth of 9% to 11%, projecting revenue between $390 million and $400 million [14] - The company anticipates full-year Siding revenue growth of 7% to 9%, with adjusted EBITDA expected to be between $415 million and $425 million [16] - For the OSB segment, adjusted EBITDA is projected to be between $200 million and $210 million, with a focus on maintaining cost discipline and expanding higher-margin products [17] Capital Expenditures - Capital expenditures in 2024 were $183 million, with plans to increase investment to approximately $410 million in 2025, indicating confidence in future growth [18]